Our central goal is explain how social group variation in emotional distress occurs. Emotional distress appears to be quite prevalent and consequential among adolescents. Yet, previous research does not identify clearly the adolescent social groups with elevated rates of distress, or the factors that contribute to these distributions. Social placement and context (e.g., class, race-ethnicity, family structure) occupy a central position in our conceptual model by: (a) regulating levels of exposure to stressors and access to psychosocial resources, which in turn affect emotional functioning; and, (b) by modifying the impact of these factors on emotional functioning. We view the family as a pivotal institution linking social placement with adolescent emotional distress, with the internal workings of the family directly contributing to emotional functioning and modifying the emotional impact of stressful circumstances arising external to the family. Data collection consists of a panel survey of approximately 1,200 adolescents aged 12-17 years from three major racial-ethnic groups: non-Hispanic whites, blacks, and Hispanics. Subjects are selected from an area probability sampling frame of Los Angeles County reflecting the cultural and socioeconomic diversity of the region. These adolescents and their parents are interviewed 3 times at 6-month intervals. Interviews ask about: acute and chronic stressors, psychosocial resources (social support, coping, self-concept), developmental state, and sociodemographic and economic characteristics, including family structure. Multiwave latent variable causal models are estimated for the patterns of direct, indirect, and total causal influence implied by our conceptual model. Social and developmental group differences are assessed for both the measurement and structural relations portions of these models. Subgroup modeling and stress-modification models are used to assess group differences in being stress-resistant or stress-responsive. The combined parental-adolescent data are used to examine familial influences on emotional functioning, including interactive aspects of social support and coping. These results are used to make recommendations concerning preventive interventions.